Demonetization – A transaction analysis approach to understanding the decision!

Transactional Analysis is a concept developed by Eric Berne in the 1950’s and from there corporate managers began to use it to improve interactions among individuals on teams and between teams.  It fell into a state of disuse because of its complexity.  However it has its usefulness in understanding democratic interactions and decision making.

TA categorizes and calibrates ego into three basic states – the Parent, the Adult and the Child and suggests that interactions are dependent on the ego state of the individuals concerned.  Knowledge of one’s own ego state can also lend its philosophy to manipulation of others.

Berne suggested that three basic personalities or ego states operate in an individual and his attitude and behaviour flows from his ego state.

Basic Personality/ Ego State	Characteristic Attitude	Feelings behaviour and langauge
PARENT	Critical Parent	makes rules and sets limits
		disciplines, judges and criticises
	Nurturing Parent	advises and guides
		protects and nurtures
ADULT		concerned with data and facts
		considers options and estimates probabilities
		makes unemotional decisions
		plans and makes things happen
CHILD	Free (Natural) Child	fun-loving and energetic
		creative and spontaneous
	Adapted Child	compliant and polite
		rebellious and manipulative

Berne also said that life positions that individuals take flow from these ego states as follows

I'M NOT OK  -  YOU'RE OK	I'M OK  -  YOU'RE OK
"I wish I could do that as well as you do" – Let me get away from others	"Hey, we're making good progress now" – I get on well with others.
I'M NOT OK -  YOU'RE NOT OK	I'M OK - YOU'RE NOT OK
"Oh this is terrible - we'll never make it" – We’re going nowhere	"You're not doing that right - let me show you" – Get rid of others

It’s true that people move around from one life position to another, depending on the situation, but there is always a pre disposed position or a preferred position that people tend to revert to, based on early life experiences. So basically our life positions determine our attitudes and pre disposed life positions influence our attitudes to the world at large greatly.

The  "I'm OK, you're OK" kind of people get on with life as adults. They're confident and happy about life and work, and interact by collaboration and mutual respect, even when they disagree.

The “I'm OK, you're not OK" people tend to be smug and superior.  They belittle others, who they view as incompetent and untrustworthy, and are often competitive and power-hungry. They talks about others from a position of superiority considering themselves perfect in relation to others, hence their decisions and their interactions may not reflect reality as it exists on the ground. Many managers and persons in authority fall in this trap. Games they play are include playing the victim or the rescuer.

The I'm not OK, you're OK"  people often feel sad, inadequate or even stupid in comparison to others.  They undervalue their skills and contribution and withdraw from problems.

And the last “I'm not OK, you're not OK" people feel confused or aimless.  They don't see the point of doing anything, and so usually don't bother. They drift.

Berne suggested that all communication (he called them transactions) between people are characterised by the Ego State of the two participants.  Incidentally they also determine the style of decision making and interaction and if one were to apply this Transactional Analysis theory to the Demonetization decision and subsequent controversy the following conclusions can be reached.

a.    Given the background above, it would seem that the decision was taken from the decision maker’s life position of “I’m ok, you’re not ok”.  The Chronology, the aftermath and the pronouncements of the leadership support this conclusion.  Leadership Speeches in India, starting with the dramatic announcement of demonetization on November 8^th, and surprisingly and painfully in Japan too, suggested that all of India was corrupt and the corrupt must be punished.  It was the critical parent talking – taking a critical position, and promising retribution for bad behaviour and then setting limits – like parents often do with their children, perhaps missing the point that Indians do need to be dealt with as adults.

b.    The decisions in the aftermath of this earth quaking decision, were like aftershocks, changing in reach and magnitude from day to day. From being called criminals to be marked as criminals on their fingers came from a smug and superior position – a position of strength that cannot be argued with, in the parliament or outside especially on social media.  All opposition, or question marks on the decision were belittled with a counter question – are you with the hoarders or with the clean up?

c.    Then came the games people play, incidentally another book by Eric Berne, where the manipulative tendencies came to the fore. The decision maker justified the move by playing the victim, then the resucer, as he promised that the honest would be spared and would live happily ever after and finally the persecutor – a role he started with – You made me do this by your bad behaviour. Sample these Leadership Quotes and draw your own conclusions:

·         I was not born to sit on a chair of high office. Whatever I had, my family, my home...I left it for the nation

·         Yes I also feel the pain. These steps taken were not a display of arrogance. I have seen poverty & understand people's problems

·         We took a key step to help the honest citizen of India defeat the menace of black money

·         Previous governments neglected this; Did I hide anything? We took a key step to help honest citizen to defeat the menace of graft.

·         Why do we have to put the future of our youth at stake? Those who want to do politics are free to do so.

·         This suffering is for 50 days; After cleanliness, not even a mosquito can fly; People in 2G scam have to stand in queue for Rs 4,000.

·         If I commit any mistake, I am ready to face any punishment the country will give me. But I promise to deliver corruption-free India.

·         I know the forces up against me, they may not let me live, they may ruin me because their loot of 70 years is in trouble, but I am prepared.

·         The people have chosen a government and they expect much from it. In 2014, many people voted to free the nation from corruption... If any money that was looted in India and has left Indian shores, it is our duty to find out about it.

·         They think they can stop Modi by creating hurdles and harrowing me. I will not be cowed down. I will not stop doing these things, even if someone were to set me on fire alive

So what can we expect down the line? More of the same. For people who are in this life position, have a “perfection driver, and their personal strivings makes others seem less perfect. Note the 24 hour work days, the smug speeches, the “I” vehicle of change. Taibi Kahler identified this as one of five drivers in the field of Transactional Analysis.

They believe that they must succeed in everything they do, and be hailed as wonderful and correct in every way, even though what they do may not deserve that praise.  They are generally neat and well-groomed and display an ever so slight hint of narcissism never completely satisfied with what they do or have achieved and so work very hard.  However they also are very scared of failure, or losing control and therefore over compensate in so many different ways especially while exercising control. The Demonetization decision is a case in point!

Demonetization may be good for some, bad for others, and according to most will bring long term gain with short term pain. Only time will tell. However speculation is rife about the next moves in the game of money – but given the ego states from which the leadership operates, brace for more and as you complete the non-monetary transaction with the leadership, it’s best you respond, not react!